1. What is Salary Increase Percentage?

The Salary Increase Percentage measures how much a salary has grown from its original amount to a new amount, expressed as a percentage of the original salary. It's a key metric for understanding compensation changes.

2. How Does the Calculator Work?

The calculator uses the salary increase formula:

Where:

• \( \text{New Salary} \) — The proposed or new salary amount
• \( \text{Current Salary} \) — The original or current salary amount

Explanation: The formula calculates the difference between the new and current salary, divides by the current salary to get the relative change, then multiplies by 100 to convert to a percentage.

3. Importance of Salary Increase Calculation

Details: Understanding salary increase percentages helps in evaluating job offers, negotiating raises, planning career growth, and comparing compensation changes over time.

4. Using the Calculator

Tips: Enter both current and new salary amounts in the same currency and time period (e.g., annual). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good salary increase percentage?
A: Typically, 3-5% is standard for annual raises, while 10-20% or more might be expected when changing jobs or getting promotions.

Q2: Should I use gross or net salary for this calculation?
A: This calculator typically uses gross (pre-tax) salary figures for consistency in comparisons.

Q3: How does this differ from cost of living adjustments?
A: COLA increases are meant to maintain purchasing power, while general salary increases may include merit or market adjustments.

Q4: Can I use this for hourly wage increases?
A: Yes, if you convert hourly rates to equivalent annual salaries or use consistent time periods for comparison.

Q5: What if my new salary is lower than current?
A: The calculator will show a negative percentage, indicating a salary decrease.